CBSE Class 12 Accountancy – MCQ and Online Tests – Unit 6 – Accounting for Share Capital
Every year CBSE conducts board exams for 12th standard. These exams are very competitive to all the students. So our website provides online tests for all the 12th subjects. These tests are also very effective and useful for those who preparing for competitive exams like NEET, JEE, CA etc. It can boost their preparation level and confidence level by attempting these chapter wise online tests.
These online tests are based on latest CBSE Class 12 syllabus. While attempting these our students can identify the weak lessons and continuously practice those lessons for attaining high marks. It also helps to revise the NCERT textbooks thoroughly.
CBSE Class 12 Accountancy – MCQ and Online Tests – Unit 6 – Accounting for Share Capital
Question 1.
When a company issues shares at a premium, amount of premium may be received by the company :
(a) Along with application money
(b) Along with application money
(c) Along with calls
(d) Along with any of the above
Answer
Answer: (d) Along with any of the above
Question 2.
A joint stock company is :
(a) An artificial legal person
(b) Natural person
(c) A general person
(d) None of these
Answer
Answer: (a) An artificial legal person
Question 3.
Reserve share capital means :
(a) Part of authorised capital to be called at the beginning
(b) Portion of uncalled capital to be called only at liquidation
(c) Over subscribed capital
(d) Under subscribed capital
Answer
Answer: (b) Portion of uncalled capital to be called only at liquidation
Question 4.
Equity shareholders are :
(a) Customers
(b) Creditors
(c) Debtors
(d) Owners
Answer
Answer: (d) Owners
Question 5.
When full amount is due on any call but it is not received, then the short fall is debited to :
(a) Calls-in-advance
(b) Calls-in-arrear
(c) Share Capital
(d) Suspense Account
Answer
Answer: (b) Calls-in-arrear
Question 6.
Reserve capital means :
(a) A part of subscribed uncalled capital
(b) Reserve Profit
(c) A part of Capital Reserve
(d) A part of Capital Redemption Reserve
Answer
Answer: (a) A part of subscribed uncalled capital
Question 7.
The difference between subscribed capital and called up capital is called :
(a) Calls-in-arear
(b) Calls-in-advance
(c) Uncalled capital
(d) None of these
Answer
Answer: (c) Uncalled capital
Question 8.
Securities Premium is shown under which head in the Balance Sheet ?
(a) Reserve and Surplus
(b) Miscellaneous Expenditure
(c) Current Liabilities
(d) Share Capital
Answer
Answer: (a) Reserve and Surplus
Question 9.
Which statement is issued before the issue of shares ?
(a) Prospectus
(b) Articles of Association
(c) Memorandum of Association
(d) All of these
Answer
Answer: (d) All of these
Question 10.
Shares may be issued :
(a) At par value
(b) At FYemimum
(c) At Discount
(d) Both (a) & (b)
Answer
Answer: (d) Both (a) & (b)
Question 11.
Capital included in the liabilities of a company is called :
(a) Authorised Capital
(b) Issued Capital
(c) Subscribed Capital
(d) Paid-up Capital
Answer
Answer: (d) Paid-up Capital
Question 12.
An issue of shares which is not a public issue but offered to a selected group of persons is called :
(a) Public offer
(b) Private placement of shares
(c) Initial public offer
(d) None of these
Answer
Answer: (d) None of these
Question 13.
If a share of ₹ 10 on which ₹ 8 has been called and ₹ 6 is paid is forfeited, the Share Capital Account should be debited with :
(a) ₹ 8
(b) ₹ 10
(c) ₹ 6
(d) ₹ 2
Answer
Answer: (a) ₹ 8
Question 14.
Company can utilise securities premium for :
(a) Writing off loss incurred on revaluation of asset
(b) Issuing fully paid bonus shares
(c) Paying divided
(d) Writing off trading loss
Answer
Answer: (b) Issuing fully paid bonus shares
Question 15.
Premium on issue of shares is shown on which side of the Balance sheet.
(a) Assets
(b) Liabilities
(c) Both
(d) None of these
Answer
Answer: (b) Liabilities
Question 16.
J. Ltd. re-issue 2,000 shares which where forfeited by crediting share forfeiture account by ₹ 3,000. These shares were re-issued at ₹ 9 per share. The amount transferred to capital reserve will be :
(a) ₹ 3,000
(b) ₹ 2,000
(c) ₹ 1000
(d) Nil
Answer
Answer: (c) ₹ 1000
Question 17.
If a share of ₹ 10 on which ₹ 8 has been paid up is forfeited, it can be reissued at the minimum price of…….
(a) 10 Rs. per share
(b) 8 Rs. per share
(c) 5 Rs. per share
(d) 2 Rs. per share
Answer
Answer: (d) 2 Rs. per share
Question 18.
Z & Co. forfeited 100 shares of 10 Rs. each for non-payment of final call of 2 Rs. per share. All the forfeited shares were re-issued at 9 Rs. per share. What amount will be transferred to Capital Reserve A/c ?
(a) 700 Rs.
(b) 800 Rs.
(c) 900 Rs.
(d) 1,000 Rs.
Answer
Answer: (a) 700 Rs.
Question 19.
Secrities Premium can not be applied :
(a) For paying dividend to members
(b) For issuing bonus shares to members
(c) For writing off preliminary expenses of company
(d) For writing off discount on issue of debentures
Answer
Answer: (a) For paying dividend to members
Question 20.
Forfeiture of shares results in the reduction of:
(a) Paid-up Capital
(b) Authorised Capital
(c) Fixed Assets
(d) Reserve Capital
Answer
Answer: (a) Paid-up Capital
Question 21.
When shares are forfeited, the Share Capital Account is debited with:
(a) Nominal value of Shares
(b) Market value of Shares
(c) Called-up value of Shares
(d) Paid-up value of Shares
Answer
Answer: (c) Called-up value of Shares
Question 22.
When a company issues fully paid shares to promoters
for their services, the journal entry will be:
(a) Bank A/c Dr.
To Share Capital A/c
(b) Good will A/c Dr.
To Share Capital A/c
(c) Promoters Personal A/c Dr.
To Share Capital A/c
(d) Promotion Expenses A/c Dr.
To Share Capital A/c
Answer
Answer: (b) Goodwill A/c Dr.
To Share Capital A/c
Question 23.
Amount of calls in Arrear is :
(a) Added to capital
(b) Deducted from share capital
(c) Shown on the assets side
(d) Shown an the equity and liability side
Answer
Answer: (b) Deducted from share capital
Question 24.
A company has…………
(a) Separate Legal Entity
(b) Perpetual Existence
(c) Limited Liability
(d) All the above
Answer
Answer: (d) All the above
Question 25.
The liability of members in a company is :
(a) Limited
(b) Unlimited
(c) Stable
(d) Fluctuating
Answer
Answer: (a) Limited
Question 26.
According to Table E of the Companies Act, 2013 interest on calls in arrears charged should not exceed :
(a) 5% p.a.
(b) 6% p.a.
(c) 8%p.a.
(d) 10%p.a.
Answer
Answer: (d) 10%p.a.
Question 27.
Equity shareholders are :
(a) Creditors of the company
(b) Owners of the company
(c) Customers of the company
(d) None of these
Answer
Answer: (b) Owners of the company
Question 28.
Balance of Forfeited Shares Account after reissue of forfeited shares is transferred to :
(a) Profit & Loss A/c
(b) Capital Reserve Account
(c) General Reserve Account
(d) None of these
Answer
Answer: (b) Capital Reserve Account
Question 29.
If the loss on reissue of shares is less than the amount forfeited, the ‘surplus’ or profit is transferred to :
(a) Capital Reserve
(b) Revenue Reserve
(c) Profit & Loss A/c
(d) None of these
Answer
Answer: (a) Capital Reserve
Question 30.
Under the provisions of Companies Act, company can issue:
(a) Only equity shares
(b) Only preference shares
(c) Preference shares and equity shares
(d) None of these
Answer
Answer: (c) Preference shares and equity shares
Question 31.
Discount allowed on reissue of forfeited shares is debited to:
(a) Share Capital A/c
(b) Share Forfeiture A/c
(c) Profit & Loss A/c
(d) General Reserve A/c
Answer
Answer: (b) Share Forfeiture A/c
Question 32.
Reight shares are the shares, which :
(a) Are issued to the Direction of the company
(b) Are issued to existing shareholders of the company
(c) Are issued to promoters in consideration of their services
(d) Are issued to the vendors for purchasing assets
Answer
Answer: (b) Are issued to existing shareholders of the company
Question 33.
Total amount of liabilities side includes :
(a) Authorised Capital
(b) Issued Capital
(c) Subscribed Capital
(d) Paid-up Capital
Answer
Answer: (d) Paid-up Capital
Question 34.
A company issues its shares at premium under which Section of Indian Companies Act, 2013 ?
(a) 78
(b) 79
(c) 52
(d) 53
Answer
Answer: (c) 52
Question 35.
Shares can be forfeited :
(a) For failure to attend meetings
(b) For non-payment of call money
(c) For failure to repay the loan to the Bank
(d) For which shares are pledged as a security
Answer
Answer: (b) For non-payment of call money
Question 36.
The portion of the authorised capital which can be called-up only on the liquidation of the company is called:
(a) Issued Capital
(b) Called-up Capital
(c) Uncalled Capital
(d) Reserve Capital
Answer
Answer: (d) Reserve Capital
Question 37.
Shareholders get:
(a) Interest
(b) Dividend
(c) Commission
(d) Profit
Answer
Answer: (b) Dividend
Question 38.
Premium on issue of shares is a :
(a) Capital Gain
(b) Capital Loss
(c) General Profit
(d) General Loss
Answer
Answer: (a) Capital Gain
Question 39.
Share Application Account is :
(a) Personal Account
(b) Real Account
(c) Nominal/ Account
(d) None of these
Answer
Answer: (a) Personal Account
Question 40.
Share Allotment Account is :
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer
Answer: (a) Personal A/c
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